Most people think that credit is good, but it is true that credit is a tool used against many consumers. The problem is that most of the American population is broken and dependent on a survival loan. Credit is debt management, and most people do not understand how to manage debt. The school system in the US spends so much time teaching students how to live their lives robotically that they forget money management lessons. Everything from employment, car rental to hotel booking, depends on some form of lending. The loan is for poor people who do not have enough cash. This is a problem that rich people should not worry about.
The United States is the richest country on the planet, but has the widest gap between rich and poor. The CEO of Wal-Mart earns about $ 7,000 an hour as opposed to cashiers and other Wal-Mart employees who barely earn $ 300 a week. How can anyone manage debts and live comfortably while earning this type of salary. Most people are taught to negotiate credit card debt and improve credit. This is the biggest mistake any consumer can make. Consumers are unaware that at any given time, a credit card company settles with a debt of $ 600 less than their outdated balance sheet. By law, the card company must report this to the IRS. This is very important for the consumer because the IRS will eventually consume 1099C. The consumer will have to pay taxes on the loan charged by the company that issued the credit cards. This is capitalism and at the same time unjust. However, what can a person do who is already trying to pay the bills to protect himself? They may allow the lender to recover the debt with a tax loss. If this happens, the debt can no longer be recovered by the lender.
Many credit card companies will continue to sell their written-off accounts to agency agencies for pennies on the dollar. Collection agencies will convince many consumers that if they do not pay this debt, it will ruin their credit. Many consumers are unaware that paying an offender or collection bill will not improve their credit score so much as to help them get more loans. Consumers should always ask for confirmation of indebtedness from collection agencies with complete documentation. Most collection agencies are unable to provide this information and send the consumer a screenshot of the balance received from the original lender. Sometimes they send a statement to the consumer about the destruction of the instrument. It just means they don’t have the original documents. The consumer must always respond with a waiver and file a complaint with the Bureau of Business Improvement, forcing the collection agency to prepare an original contract, which in most cases they cannot.
The reality of our credit management society is that cash is king. Credit is a whip used for modern slavery and socio-economic control. Until people demand change in our political, educational, and credit systems, they will be forced to live their lives as intellectual and working prostitutes for wealthy people as well as the corporations they lead.